Exploring the Journey of Business Exit Advisory Group: A Conversation with Simon Bedard

Introduction

In this article, we will delve into the key themes discussed in a conversation with Simon Bedard, the founder and CEO of Exit Advisory Group. Simon has over 20 years of experience in finance, investments, energy, and technology, and has started and exited multiple companies. He is also the host of the Buy, Grow, Sell podcast, which provides valuable insights for entrepreneurs looking to acquire, grow, or exit a business.

During the conversation, Simon shared his personal journey in the business world, starting with a corporate job in institutional banking and eventually transitioning into entrepreneurship. He discussed the challenges and lessons he learned along the way, as well as the motivation behind starting Exit Advisory Group. Simon emphasized the importance of helping business owners end their journey well and get the best deal for their assets, as he noticed a lack of professionalism and ethical options in the broking world.

Exploring the Journey to Starting Exit Advisory Group

Simon's journey to starting Exit Advisory Group began during the 2008 recession when he and his wife decided to start a business in the renewable energy and environmental space. After a few years, they sold the business and Simon went back to corporate for a while. However, the entrepreneurial bug never left him, and he eventually decided to start a business again with his wife. They initially considered buying a business, but after an 18-month search, they were underwhelmed by what they found. This led Simon to reflect on the experience of business owners selling their businesses and how they deserved better. He realized there was a lack of information and support for business owners looking to exit, which inspired him to start Exit Advisory Group.

The Importance of Legacy in Business Exits

One of the key themes that emerged from the conversation was the importance of legacy in business exits. Simon highlighted that many business owners have a deep connection to their businesses and want to ensure that their legacy is preserved even after they exit. He emphasized the need for business owners to think beyond just the financial aspects of selling a business and consider the impact on their employees, customers, and suppliers. Simon shared examples of clients who prioritized the well-being of their employees and the continuity of their businesses when making decisions about selling. He also discussed the role of legacy in attracting buyers and how a strong reputation and positive impact can increase the value of a business.

According to Simon, "Without being able to go out and get to know the world out there, the best way you mitigate risks and factors is to have structure, to have a process, to have advisors, put yourself in the best position to be able to screen things as they're coming through."

The Challenges of Retiring for Business Owners

Retirement can be a challenging transition for business owners, especially if their identity and sense of purpose are closely tied to their businesses. Simon highlighted the importance of planning for retirement well in advance and considering the emotional and psychological aspects of the transition. He emphasized the need for business owners to have a clear vision of what they want to do next and to start exploring their options early on. Simon also discussed the role of advisors in helping business owners navigate the retirement process and make informed decisions about their future.

As Simon stated, "If you're anything like me, you'll probably have more questions down the track when you're having a glass of wine or something like that. Feel free to reach out like LinkedIn is your friend here, please feel free to reach out and connect with me."

Preparing for a Business Sale Process: Allow 12 Months and Consider Earn-Outs and Strategic Shifts

When it comes to selling a business, timing is crucial. Simon advised business owners to allow at least 12 months to prepare for the sale process, as it can take time to properly position the business and find the right buyer. He also highlighted the importance of considering earn-outs and strategic shifts as part of the sale process. Earn-outs can provide additional financial incentives for the seller and ensure a smooth transition for the buyer. Strategic shifts, such as implementing new growth strategies or diversifying the business, can increase the value of the business and make it more attractive to potential buyers.

Simon emphasized the need for business owners to have a clear purpose and vision for selling their business. He advised them to think beyond just the financial aspects and consider their personal goals and aspirations. Simon also discussed the importance of finding fulfillment in the next chapter of life and ensuring that the sale of the business aligns with those goals. He highlighted the role of advisors in guiding business owners through the sale process and helping them make informed decisions.

According to Simon, "If you really are serious about selling, then set up a process and run the process. Don't just wait for chance or wait for the proverbial tap on the shoulder because it may not come and if it does come it may not be the tap you want."

The Benefits of Building vs. Buying to Grow Your Business

Simon discussed the benefits of building a business from scratch versus buying an existing business to fuel growth. He acknowledged that both approaches have their advantages and disadvantages, and the choice depends on the individual circumstances and goals of the business owner. Building a business allows for greater control and customization, but it can also be more time-consuming and risky. On the other hand, buying an existing business provides a foundation and established customer base, but it may require additional investment and integration challenges. Simon emphasized the importance of considering both options and making an informed decision based on the specific needs and resources of the business.

As Simon stated, "Take control, take ownership of it, create a plan, get the right team around and try and aim for it. You might not land where you want to land. No plan ever survives the first day of battle, right? But at the end of the day, if you're not planning and not working towards it, then you're just leaving things to chance. And that's not a way to run a business."

Risk Mitigation and Business Planning

Risk mitigation is a crucial aspect of business planning, especially when it comes to preparing for a business sale. Simon highlighted the importance of conducting thorough due diligence and identifying potential risks and challenges that could impact the sale process. He advised business owners to work with advisors who can help them assess and mitigate these risks, ensuring a smooth and successful sale. Simon also discussed the role of strategic planning in minimizing risks and maximizing the value of the business. He emphasized the need for business owners to have a clear strategy and roadmap for growth and to continuously evaluate and adjust their plans as needed.

According to Simon, "The best way you mitigate risks and factors is to have structure, to have a process, to have advisors, put yourself in the best position to be able to screen things as they're coming through."

Conclusion and Future Outlook

In conclusion, the conversation with Simon Bedard shed light on the journey of starting and growing a business, as well as the challenges and considerations involved in exiting a business. Simon emphasized the importance of legacy, purpose, and planning in the business exit process. He highlighted the need for business owners to think beyond just the financial aspects and consider the impact on their employees, customers, and suppliers. Simon also discussed the role of advisors in guiding business owners through the sale process and helping them make informed decisions. Looking ahead, the future of business exits will continue to evolve, and it is crucial for business owners to stay informed and seek professional guidance to ensure a successful and fulfilling exit.

As Simon stated, "Feel free to reach out and connect with me. I certainly invite connections from people. Do me a favor, though, and please don't just send a connection request, send me a little message in there and just say that you actually heard me on this podcast because I'll have a little bit of context and that just helps us connect and actually form some kind of connection relationship there."